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Welcome Finance - Is This Enforceable??


emanevs
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  • 4 weeks later...

I've checked the sums again -

 

£25k paid as 121 payments of £419.47 gives a TCC of £25755.87 and an APR of 17.3%

 

The TCC is correct if you add together the Interest, the acceptance fee and the indemnity fee. The APR is within the tolerance allowed by Schedule 7 of the Consumer Credit (Agreements) Regulations 1983.

 

I was confused before by the "Rate of interest.....= 14.00%" bit which I stilldon't understand.

 

But given that the TCC and APR are correct and the fees are in the TCC not in the loan amount, then the agreement is enforceable IMO.

 

 

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under total charge for credit they have:

 

acceptance fee + mortgage indemnity fee + interest charge

 

and the smallprint below it indicates that they charge interest on it???

 

it says:

interest will be calculated at the rate of interest on the daily balance outstanding of the total amount of credit and acceptance fee. it will be paid as part of your monthly payments.

 

surely not enforceable????

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It just means they calculate the interest based on the TCC and acceptance fee (since TCC includes AF and interest).

 

The acceptance fee is included in the TCC, it is not part of the loan and interest has not been charged on it. Wilson v FCT does not apply to this agreement.

 

I'm afraid this agreement is enforceable (actually, I tink it is also properly exectuted as defined in s61).

 

 

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I have been reading a lot about this interest in acceptance fee on this site today. I have been charged an acceptance fee of 235 on our secured loan. I have got a breakdown of what our monthly payment is made up from off welcome themselves :

 

monthly payment off 284.96, divided up as follows :

credit/cash - 217.36

acceptance fee - 4.30

insurance - 63.31

 

this is over an 180month loan period. so surely from this i am paying interest on my acceptance fee by 4.30 x 180 = 774

 

This is not the 235 that is quoted on my loan, do I have this right and would this make it unenforceable ? Not sure if Im on the right lines, please help !

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Pinklily

 

As postggj says - start your own thread. If you can post your agreement that would be helpful too. We can't check the figures unless we have all of them and we would like to look at the other T&Cs too before we can answer your question

 

 

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I have started my own thread welcome fiance - problems ! wasn't sure how to link it to here, would be very grateful if you could take the time to read it and offer any advice, thanks again

 

Here is the link http://www.consumeractiongroup.co.uk/forum/welcome-finance/214188-welcome-finance-problems.html

Edited by steven4064
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Emanevs....you can either outline your dispute to Welcome and give them the chance to compensate you which would be a 'fair' thing to do in the first instance.....if they fail to compansate you or don't see it your way, then you could take it to the FOS or issue a LETTER BEFORE ACTION and get a judge to rule the agreement unenforceable....

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sorry to be so daft.

 

Should I fdo the following in the order as written?

 

1) Dispute the account? - please can you put me in the correct direction where to find the letter template?

2) 'Compensate' me to the tune of writing off the balance of the loan???

3) Issue letter before action

 

I am a lttle unsure as to FOS means, and how I get a judge to rule the agreement enforceable?

 

please can you help?

many thanks,

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